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Outsourced investments are one of the fastest-growing categories in the financial advisory world. Perched between the asset custodian and the financial advisor, these (mostly) turnkey asset management programs can handle all or a portion of their investing, technology and fiduciary duties.

Advocates of using these TAMPs point to how it's better for the advisor because it frees up more time to spend with clients and prospects. It's also better for clients because the duties are being handled by specialized professionals who benefit from economies of scale.

Skeptics say that it adds a layer of cost and takes away an element of control from the advisors in executing according to a client's financial plan.

Vince Pellegrini: [If] $1 trillion in assets and 3.4 million accounts on an innovative SaaS platform [is legacy] I'm good with that label.

Oisin's Bits: DriveWealth is newest RIA custodian with VC money and an Apex mindset; Vestmark hits $1 trillion and promptly gives RIAs means to crank out push-button hedging across accounts

$33 million in VC funds goes to up-start RIA robo custodian; no sooner does Vestmark hit $1 trillion than it pushes out software to help RIAs do omnibus hedging of positions

October 1, 2018 — 9:53 PM UTC by Oisin Breen


A new player has entered the RIA custody and clearing business; DriveWealth and its CEO Robert Cortright has a head-spinning track record of success in ventures that blend financial technology and the processing of money.

Robert Cortright: Existing RIAs are recognizing that their customers ...

Charles Goldman: We are not becoming a roll-up.

AssetMark CEO Charles Goldman grabs $5.7B Global Financial out from under rival Envestnet's nose, gets ex-Curian CEO and solidifies his firm's own future in the brutal TAMP game; but don't call it a roll-up

At number two in TAMP ranks, the Concord, Calif.-based TAMP with $46 billion bought Global Financial, whose CEO headed Curian in its growth years and got out well before its death

August 25, 2018 — 1:52 AM UTC by By Lisa Shidler

Brooke's Note: I hear it all the time. In the advice business, it's always about getting slightly more or less than "fair share" of market, regardless of sub-segment. Good is good enough in a robust industry. But a tiny handful of firms are ...

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Jeff Raupp: Whenever you say we're going to make some changes, it creates a little bit of uncertainty, but I feel like we were fortunate ... we were able to dig in and quickly address what we felt needed changing.

As Brinker Capital embraces RIA future, it ends two-year period of being an outsourced CIO with no named CIO

After the hasty exit of Bill Miller in 2016, the $22B TAMP downplayed insurance brokerage assets, played up RIAs and incubated Jeff Raupp as chief investment officer instead of seeking a ringer

June 20, 2018 — 5:45 PM UTC by Oisin Breen

Brooke's Note: The whole idea behind a TAMP is to take an IBD rep and effectively convert them to an RIA by having their portfolios outsourced to a fee-based manager. But Brinker Capital is converting from that classic model to one where it becomes ...

Jud Bergman: As we go from four or five big wins to 10 or 20 big wins, and we begin to monetize Yodlee, then people will say, 'OK, I see what you saw in it.'

Jud Bergman defines 'stupid' and post-'stupid' eras at his firm after Raymond James analyst dares to unearth the Yodlee question

The Envestnet CEO's rebuke, embracing the synonym for imbecilic and unintelligent, showed how raw feelings got in 2015 with the firm's purchase of Yodlee for about $600 million

May 29, 2018 — 11:03 PM UTC by Oisin Breen

Brooke's Note: Marvel at the outsourcers to the RIA business. They have limitless opportunity but a very limited blueprint to follow. Knowing that they need to stay on the cutting edge on behalf of an army of hundreds of thousands of reps and RIAs ...

David Musto: It's completely realistic to think there could be a dozen or more acquisitions in any twelve month period.

Vanguard's 401(k) recordkeeper, Ascensus, gets set to roll up a world of third party administrators to create a small plan superpower

With recent Great-West poach and David Musto running the show the Dresher, Pa.-based TPA adds 14 firms in 16 months and sets sights on dozens more, as roll-up strategy takes flight

April 27, 2018 — 5:46 PM UTC by Oisin Breen

Brooke's Note: Sometimes it seems like the DOL rule has affected everything in financial advice except the 401(k) business. Fidelity rolls on. Yet there's a rush to capture small 401(k) plans that pre-rule were deemed so small that unless outsized, ugly and hidden fees were ...

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Paul Gamble is selling what academics do as he did at Financial Engines -- and that worked out.

After losing Lee Kranefuss and raising $10M, 55ip gets RIAs to buy Ph.D. smarts, though a critic calls it gussied-up market timing

Guided by an ex-Financial Engines ringer, Paul Gamble, the New York startup is now portfolio modeler for $100 million

April 19, 2018 — 10:38 PM UTC by Oisin Breen

Brooke's Note: Your average RIA is about as excited about having a Ph.D. in mathematics manage client investments as they'd be about a Ph.D. in aeronautical engineering piloting their aircraft. Take DFA as a prime example of that premise: RIAs love how it ...

Hussain Zaidi: What they need is what Morgan Stanley and Ameriprise have … whole programs in place to help advisors drive financial planning and advice.

Advizr CEO reveals just how the lift-out of four Morgan Stanley breakaway engineers leapfrogs his plans ahead

Hussain Zaidi sees greenfields opportunities at small IBDs and Fortune 500 firms where planning software alone doesn't make the grade

April 13, 2018 — 7:48 PM UTC by Oisin Breen

Brooke's Note: My father was born in New York City and he liked to speculate about the inevitable day when the blighting of real estate in places like Queens, the Bronx or Harlem would reverse course. Eventually it began happening in earnest long after he moved ...

Eric Clarke: You learn more from the deals you don't win.

Orion buys $10-billion TAMP to take on Envestnet and AssetMark head-on for mega-accounts

Omaha, Neb.-based NorthStar division is buying FTJ Fundchoice to launch Orion Enterprise after painful losses in bidding for business with large RIAs and IBDs

April 11, 2018 — 2:03 PM UTC by Brooke Southall

Brooke's Note: So far 2018 has been a quiet year for hard news in the RIA business. Big deals, hires, fires, start-ups, new ideas and new laws have been scarce. So this Orion purchase of FTJ FundChoice stands out as a big, decisive action ...

Larry Shumbre: Riskalyze doesn't work for any advisor who knows the basics of risk.

Totum's bid to beat Riskalyze, including its own 1 to 99 risk number, gets reward -- acceptance by Black Diamond and CircleBlack

CEO Larry Shumbres says financial advice industry is in for a shock, as thousands-strong uptick in users shows Totum Risk is the real deal

March 30, 2018 — 8:39 PM UTC by Oisin Breen

Brooke's Note: I've said it before: It's amazing that no software existed in the RIA marketplace dedicated to risk until five years ago. Then it was just as surprising there were no imitators. Now we have a risk analysis market leader and a feisty ...

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Aaron Schumm: With the technology there's so much to do.

Vestwell jets ahead and adds pilots on the fly to keep startup on course

Founder Aaron Schumm is dealing with the dilemma/windfall of business coming over the transom ahead of projections

March 26, 2018 — 10:10 PM UTC by Oisin Breen

Brooke's Note: The best advice I got before starting RIABiz was to just go ahead and start. Anything more than that is overthinking, the advisor said. Of course, that guidance applies to every startup -- that a seat-of-the-pants launch into the abyss can be the right ...

Rob Klapprodt: “We are [now] at the front end of a more aggressive push into the independent RIA channel.

After $30-million VC raise, 106 hires and topping $1 trillion of AUA, Vestmark is no longer just that UBS-LPL TAMP engine in the Massachusetts suburbs

Rob Klapprodt is helping reinvent his 'aggressive' firm to compete with the 'Vestmark' brand

March 12, 2018 — 7:53 PM UTC by Oisin Breen

Brooke's Note: We've recently published articles about Orion, Black Diamond, CLS and Riskalyze all getting more firmly entrenched as platforms of money managers. See: What Aaron Klein's board pick of Lori Hardwick tells about Riskalyze's next big hurdle. Now here ...

Adam Birenbaum: We haven't scratched the surface.

Buckingham becomes KKR-fueled, check-listed M&A 'machine' that now feeds on BAM TAMP clients

The Focus Financial-owned DFA RIA faces hazards of going '100 miles per hour' but Buckingham CEO Adam Birenbaum has no fear

March 2, 2018 — 9:28 PM UTC by Oisin Breen

Brooke's Note: I consider them to be an odd couple of sort -- Adam Birenbaum and Rudy Adolf. The former is a heart-on-sleeve Midwestern millennial with a roll-up, Buckingham. But his roll-up is inside the New York-to-the-core Focus Financial, the Habsburg Empire-esque dominion of Adolf ...

Chris Curtis: Yodlee’s revenue has grown 44%.

As robos try to crash Envestnet's platform party, CEO Jud Bergman explains pivot to 'wellness' and tells where FolioDynamix and Yodlee stand

Ric Edelman is an early Envestnet 'wellness' pilot and Yodlee's expanding margins are -- maybe -- a good sign for that unit as it moves toward break-even

February 28, 2018 — 12:49 AM UTC by Oisin Breen

Brooke's Note: Envestnet may be the best roll-up in the RIA business (albeit of investment platforms) but its ability to do so is being tested like never before. In the past, the Chicago company's pure economies of scale and basic buttoned-down competency assured that ...

Charles Goldman: We had a phenomenal year.

AssetMark records 'off the charts' year and SEI is 'right on track' after staggering $1-billion platform overhaul

Concord, Calif.-based TAMP added $10 billion of AUM, 900 advisors after hiring TD Ameritrade's Veo API fintech star

February 23, 2018 — 4:39 PM UTC by Brooke Southall

Brooke's Note: TAMP owners always, for decades, had the best elevator pitches in the industry: We take the investing off the advisor's plate, do a better job and leave the advisor to have long lunches with prospects to rake in more assets and the advisor needn ...

Aaron Klein: We're shifting from scale to surgeon.

Riskalyze tromps onto Envestnet turf by signing $20-billion, 975-advisor account with its robo-manager

Aaron Klein's Autopilot takes aim at 65% of advisors who find TAMPs are both expensive and too much abdication of portfolio management customization

February 6, 2018 — 10:26 PM UTC by Brooke Southall

Brooke's Note: Until now hybrid IBD/IAR reps had to make a hard decision about whether to embrace a TAMP relationship or not -- and each model had big potential drawbacks. Using a TAMP is a huge scale advantage and a huge compliance advantage. But ...

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